Price Drops


#22

Good. Are you looking for a son in law? I have two handsome and smart sons😃


#23

as usual, i am waiting to be adopted.


#24

This house is too small for you. :slight_smile:


#25

Rents are dropping here. My co-workers was going to move in July but had knee surgery. She went back to rent now, and the same complex is charging $400/mo less. That’s some brutal seasonality. That or the sky is falling.


#26

I will put them in my SIL candidate list.

BTW, this conversation reminds me of hilarious NPR podcast episose(indicator, the liars of romance).


#27

@hanera’s sons can’t even manager their dad’s rentals. I wouldn’t want them anywhere near yours.


#28

Competing with Jane? PM me photos of your daughters and your proposed properties :slight_smile:


#29

All these spoiled-silly kids. Use up every single penny before you die and leave nothing for them!!! :rofl:


#30

Everyone should hang on long enough to pass it on to their grandkids.


#31

The making of American landed aristocracy. No taxes either.


#32

If you had to spoil someone who would you prefer?


#33

Charities, duh.


#34

Coming back to original intent of this thread (sorry that I distracted people. :slight_smile: ), I guess small correction is going on (5-10%) as a result of too steep price increase at the beginning of this year. I also think inventory is higher than the same time of previous years.
However, I don’t think it will lead to long term correction. The reason why is because job market looks good. In case of San Jose (near downtown), splunk just signed the lease for new building on Santana Row (plan to hire 2000+ in SF and San Jose), Adobe is building new building next to its headquarter (plan to bring 3000+ more employee).
I received 50+ inquiries for my rental in July. Most of them are either “people who just sold their house or plan to sell soon yet want to stay in this area (many of them have kids at school too)” or “techies/doctors/lawyers who got competitive offer and relocated to this area”. Given that I don’t see any compelling reason for long term correction at this point. I guess real correction(20%sh longterm correction) will come a couple of years after major tech stocks go down by 20%+.
However, that’s just my guess.


#35

I agree with your assessment. I think this is just a temporary slowdown and will probably pick back up later this year or beginning of next. Prices went up too much too quickly and coupled with rising interest rates, many people were priced out. People need some time to regroup and reassess in what they can afford and will come back to the market. There are so many people on the sidelines that need to buy houses it is hard to imagine a more extended or severe drop.

So why did the homeowners sell their house to rent? Are they looking to get the cash from their house to buy the next house or are they trying to time the market? It is very risky to be selling your primary to time the market.


#36

Unfortunately, i couldn’t figure that out.
My best speculation is “some people see primary home as one of investment and think rent is cheaper than owning home?”.
Anyway, that was the biggest unexpected trend i found during the process. Interestingly, none of them were immigrants. Maybe, they don’t mind retiring to other place?
It could be only applicable to that local neighborhood.


#37

Price too low :slight_smile:
Generally accepted definition is:
Bear market means more than 20% decline
Correction is less than 20% decline
Consolidation is less than 10% decline


#38

Quotes from 2007.

The assumption with “no way there’ll be a correction” is that the price appreciation preceeding today was reasonable. If things were all reasonable at all times, there would never be a correction. When prices rise 20-30% in a year we cheer, but it does come with “reversion to mean”.

Temporary or not, enjoy the current weakness.


#39

Check the chart. I recall price is actually quite near the mean before the Trump rally. Now is above the mean (not sure how much, didn’t bother to check). Comment from memory, didn’t verify with latest chart.


#40

I[quote=“tomato, post:38, topic:5821”]
Temporary or not, enjoy the current weakness.
[/quote]

My friend bought their home in Santa Clara (cusd) in 2007 at 800k. The similar homes were sold around 700k in 2009-2010. It is now over 2million. They bought the new primary home this spring keeping the previous home (paid off already).
If you look at the price history in prime location(PA, LA, CU, at that time MV was not cosidered as good as CU) during 2008-2010, you will find that correction was not like 20+%. Besides, most of houses on market at that time were not in good condition or not in good location (close to busy street, highway etc).
Note that even such correction happened after the biggest stock crash in my lifetime not before it.


#41

@Jane, absolutely agree with this. If you were in the market looking for homes in 2009-2010, you would appreciate how resilient valley housing market is. That was not a regular recession. We may not see such for next few decades. That’s where my belief in this market comes from.